The next frontier in gaming could be the Home of the Taj Mahal, according to the financial advisory group KPMG.

Despite being so close to the Asian video game market, India only gained mainstream acceptance into the world of gaming last year with the Xbox 360. It is estimated that in the next four to five years, India's gaming market could jump from $30 million to $700 million.

"The main drivers for the growth of the gaming industry in India would be seeding initiatives by the players, marketing, and pricing of the games — which is an important aspect in India," said Rajesh Jain, executive director, KPMG.

According to a study done prior to launch of the Playstation 3 there in April, an increase in jobs, internet usage and disposable income made the next gen system's entry into the market smoother.

"I have more than 1,000 retail touch points across the top seven cities," said Microsoft India's country manager Mohit Anand. "We are everywhere … any retail outlet."

While the Wii has still not been officially released in the country, many systems have already found their way there through the gray market.Though an installed base of systems is only the first step to video games taking over the country.According to Tony Garcia, CEO of FX Labs, "What is needed is localized content and games designed for the Indian market."

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